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2 years ago

Suppose a monopolist's costs and revenues are as follows: ATC = $50.00; MC = $35.00; MR = $45.00; P = $55.00. The firm should

Business

1 answer:

bekas [8.4K]2 years ago

3 0

Answer:

The firm should increase output and reduce price

Explanation:

For a monopolist, there can be one of the following three scenarios at a time point in time:

Scenario one, MR = MC: For a monopolist, profit is maximized at the point where marginal revenue (MR) is equal to to marginal cost (MC), i.e. where MR = MC.

Scenario two, MR < MC: But when the MR < MC, it indicates that the monopolist is currently producing a higher quantity of output and it is not maximizing profit. In order to maximize profit, the monopolist has to reduce output until MR = MC.

Scenario three , MR > MC: But when the MR > MC, it indicates that the monopolist is currently producing a lower quantity of output and it is not maximizing profit. In order to maximize profit, the monopolist has to increase output until MR = MC. Also, the monopolist has to reduce price in order to sell the increased quantity of output.

From the question, the monopolist falls into scenerio three as MR > MC, i.e. $45 > $35. Therefore, the monopolist should increase output until MR = MC and reduce price in order to maximize profit.

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enyata [817]

Answer:

Real property consists of the land, land rights, and anything permanently attached to the land, while real estate consists of a structure attached to the land

Explanation:

Real estate refers to land that has a physical existence and the resources, structures are attached to it also it expands with respect to the rights of ownership and usage

While on the other hand the real property comprises fo land, rights of the land, and the thing that is permanently attached with respect to the land

Therefore the last second option is correct

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3 years ago

On March 12, a company provides services on account to an individual Hospital for $9,100, terms 2/10, n/30. An individual does n

shutvik [7]

To record the transactions with the individual hospital company, the following journal entries are made:

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March 12: Debit Accounts Receivable $9,100

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To record the sale of services on terms 2/10, n/30.

March 31: Debit Cash $9,100

Credit Accounts Receivable $9,100

To record the receipt of cash in full settlement.

<h3>Transaction Analysis:</h3>

March 12: Accounts Receivable $9,100 Sales Revenue $9,100

Terms 2/10, n/30

March 31: Cash $9,100 Accounts Receivable $9,100

Thus, the journal entries for the customer do not require the recognition of the 2% sales discount since the customer could not pay within the discount window.

Learn more about recording transactions at brainly.com/question/17201601

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2 years ago

Brenda, the sales manager of a firm, wants to generate a particular report containing sales analyses of the second and third qua

choli [55]

Query is the correct answer to the question

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3 years ago

George and Miguel are considering opening up a shoe store but first need to do market research. Which one of these is NOT part o

PIT_PIT [208]

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3 years ago

_______________ holds that $1 in cost savings increases pretax profits by $1, while a $1 increase in sales increases pretax

Maslowich

Answer:

Profit leverage effect. The explanation of this question is given below in explanation section.

Explanation:

<u>Profit leverage effect</u> holds that $1 in cost savings increases pretax profits by $1, while a $1 increase in sales increases pretax profits by only $1 multiplied by the pretax profit margin.

The profit leverage effect is about reducing operating expenses that is more efficient than increasing sales. It is situated at the start of the production process of a service or product, the procurement stage is in an excellent position to reduce overall costs, especially in the short term. This is why companies often resort to reducing headcount when they run into financial difficulties. Reducing operating costs is the fastest way to produce a short-term impact on the bottom line. A dollar saved in purchasing almost always has a greater impact on profit than a dollar increase in sales. However, it is remember that, only a small portion of each sales dollar makes it to the bottom line. The rest is spent on the costs of doing business—e.g., cost of administrative, goods sold, logistics, and marketing costs. These costs must be deducted from each sales dollar to determine its contribution to operating profit (it is also known as, earnings before interest and taxes). By contrast, every dollar you save through purchasing goes straight to operating profit.

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3 years ago